{
  "id": 9293598,
  "title": "Experts say CBN’s surprise rate cut could boost growth, pressure FX",
  "url": "https://urgent.news/2026/09/23/experts-say-cbns-surprise-rate-cut-could-boost-growth-pressure-fx",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-23T06:44:19.000Z",
  "source": {
    "name": "Nairametrics",
    "slug": "nairametrics",
    "url": "https://nairametrics.com/2026/09/23/experts-say-cbns-surprise-rate-cut-could-boost-growth-pressure-fx/"
  },
  "original_language": "en",
  "account": "Financial and economic experts have expressed surprise over the Central Bank of Nigeria's (CBN) recent decision to slash its benchmark interest rate from 26.5% to 23%, marking the first major reduction of its kind in almost two decades. Governor Olayemi Cardoso announced the move during the 307th Monetary Policy Committee (MPC) meeting on Tuesday, surprising observers who had expected rates to remain unchanged. While the reduction is seen as a potential boost for businesses and economic activity, some experts worry it may create new risks for foreign exchange inflows and investor sentiment. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, believes the move may reflect the CBN's recognition of inconsistencies within its monetary policy framework. He notes that overnight lending rates and Open Market Operations (OMO) rates suggest a disconnect between the MPR and other market rates, leading to the CBN's decision to \"reset\" rather than make a conventional rate cut. While Yusuf welcomes the reduction in borrowing costs for small and medium-sized enterprises (SMEs) and retailers, he cautions that lower rates could affect portfolio investment flows and foreign exchange liquidity. Jerry Igwilo, CEO of Nisela Capital, sees the reduction as significant and linked to Nigeria's declining inflation trend, which could help support the federal government's goal of building a one-trillion-dollar economy. Olubunmi Ayokunle, Head of Financial Institutions Ratings at Augusto & Co, also expressed surprise at the decision but is still evaluating its implications. The CBN's decision comes as inflation continues to ease across the economy, with headline inflation declining to 15.39% in August 2026.",
  "summary": "Financial and economic experts have described the Central Bank of Nigeria's (CBN) decision to reduce its benchmark interest rate from 26.5% to 23% as a welcome but unexpected move, marking the first major reduction of its kind in nearly two decades. The post Experts say CBN’s surprise rate cut could boost growth, pressure FX appeared first on Nairametrics .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}